Pétrolia

Bourque Project
On August 5, 2008, Petrolia signed a $20 million farmout agreement with an oil company. This sum will be invested in exploration and development work for the Bourque Project. The terms of the agreement were set out in the press release issued by Petrolia on August 5, 2008.

This agreement is of critical importance for Petrolia, not only in respect of the amounts invested but above all because it enables the exploration of a type of trap that has major potential for petroleum. The discovery of hydrocarbons in a Devonian reef would open the door to petroleum exploration in new areas of the Gaspé region. By joining forces with a partner to explore this property, Petrolia aims to share the risks associated with this type of investment, while at the same time benefiting from its partners’ expertise.

Saint-Simon area is covered by two permits having 57,126 acres and indicating a geology similar to the one of St-Flavien natural gas deposit, developed by Shell and SOQUIP (cumulative production of 5.7 bcf between 1980 and 1994). In 2005, JUNEX conducted a project with the objective of re-entering the Shell Saint-Simon #1 well drilled in 1969, in order to carry out productivity tests. These tests carried out in autumn 2005 indicate that the natural gas zone identified by Shell in 1969 was met from 2,519 meters in dolomitic limestones of the Black-River Group and that it could have a good potential. The presence of porosity was observed during the analysis of cuttings. Hydrothermal dolomites in the Trenton and Black-River Ordovician limestones superficially displayed south to Saint-Simon well were also identified recently. All technical data available have been analysed by JUNEX team during the last months and the company is now looking for partners in order to carry out seismic works and eventually drill one or two new wells on the structure.

Last July, Pétrolia initiated a partnership with the three main explorers in the gas and petroleum sector: Pétrolia, Junex and Gastem. Pétrolia believes it is by respecting the integrity of the each company’s management and uniting their respective forces, Quebec’s petroleum industry will become recognised globally.

By means of this partnership, Pétrolia and its Directors hold 5,4% of the capital stock of Gastem, in addition to having a seat on its Board of Directors.